Fitch Ratings affirmed its "BBB+" rating on Chicago-based Swedish Covenant Hospital's series 2016A revenue bonds.
The affirmation is a result of several factors, including the hospitals adequate liquidity metrics and limited capital spending plans. Fitch also acknowledged the hospital's highly competitive market, elevated debt burden and constrained operating profitability in the nine-month interim period that ended June 30.
Fitch revised SCH's outlook to negative from stable, reflecting the hospital's weakened operating margin and the related decrease in debt service coverage.